EXECUTIVE SUMMARY

The general purpose of this research is to study the Consumer’s

psychology towards Insurance and also the Environmental factors. The
main research objectives of this study are as follows:

1) To study the consumer perception towards Insurance.

2) To study the consumer preference while buying an Insurance
policy.
3) To study the environmental factors that affect Insurance buying
behavior.

This research will help MNYL to recognize the areas where they have to
improve in order to keep their competition alive. The research design
will include Exploratory and Descriptive research. In this the interviews
will be conducted to get information regarding perception of
consumers towards Insuranc

A survey will be conducted of approximately 100 people . The target

population for the research will consist people staying in the city of
Mumbai.

The interviews will be conducted and data will be collected accordingly.

Standard editing and coding procedures will be utilized to ensure maximum
accuracy and un-ambiguity. This includes careful interpretation and good
judgment of the data. Hypothesis testing will also be undertaken. Simple
tabulation will be utilized to analyze data.
A written report will be prepared and a presentation of the findings will
be made.

1
 TABLE OF CONTENTS

S NO: CONTENTS PG NO:

1 INTRODUCTION 4

2 INDUSTRY PROFILE 5

3 OVERVIEW OF MAX NEWYORK LIFE INSURANCE 12

4 PEST ANALYSIS 17

5 RESEARCH METHEDOLOGY 21

6 QUESTIONNAIRE 24

7 DATA ANALYSIS 27

8 CONCLUSION 58

9 RECOMMENDATIONS 60

10 BIBILIOGRAPHY 63

2
 1. INTRODUCTION
Insurance is an industry which is changing dramatically especially after the entry
of many private players in the industry. This has increased the choices that a customer
enjoyed while deciding to go ahead for an insurance policy either for himself or for the
other members of his family. Also in order to make a mark in the consumers mind these
players have come with a number of attractive product offerings as well as innovative
promotional activities. These activities have affected the mindset of the customers.
Which ultimately has lead to a change in the customer psychology towards insurance.

OBJECTIVE

The primary objective of this study is to find out the consumer psychology and
perception towards buying an insurance policy as well as towards this sector on the
whole. It has been seen over the years that people in India have a negative mindset when
it comes to Insurance. This study will help to understand whether the perception and the
view of the people towards insurance have changed or they have remained the same. The
different factors that affect the industry have been dealt with the environmental scanning
aspect of the project. This environmental scanning will help to understand the
POLITICAL, ECONOMICAL, SOCIAL and TECHNOLOGICAL aspects of the
industry.

SCOPE OF THE STUDY

This study is being conducted in the city of Mumbai and includes people staying
in different parts of Mumbai. The study includes 100 people as a sample as it was
difficult and nearly impossible to survey all the people in Mumbai. People have been
bifurcated into approximately 50 % males and 50% females. Further these males and
females are divided into different age groups of below 35 and above 35. These

3
respondents will be surveyed through a questionnaire and their responses will be
analyzed in order to study the above mentioned objective.

2. INDUSTRY PROFILE

‘Insurance’, in law and economics, is a form of risk management primarily used

to hedge against the risk of a contingent loss. Insurance is defined as ‘the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a premium, and
can be thought of as a guaranteed small loss to prevent a large, possibly devastating
loss.’

An insurer is a company selling the insurance; an insured or policyholder is the

person or entity buying the insurance. The insurance rate is a factor used to determine the
amount to be charged for a certain amount of insurance coverage, called the premium.
Risk management, the practice of appraising and controlling risk, has evolved as a
discrete field of study and practice.

PRINCIPLES OF INSURANCE

Commercially insurable risks typically share seven common characteristics.

1. A large number of homogeneous exposure units.

2. Definite Loss.
3. Accidental Loss.
4. Large Loss.
5. Affordable Premium
6. Calculable Loss.
7. Limited risk of catastrophically large losses.

TYPES OF LIFE INSURANCE POLICY

4
 Life Insurance Policies are of various types and a good understanding of their
features is a must before you can figure out which product makes most sense for your
specific need. One way of classifying Life Insurance policies is based on how the
premium is invested and the sum assured is returned back, it is as follows:

1. Term Insurance
Term Insurance is a simple insurance plan that covers the life for a specific
"term". Death benefit is paid only if the person dies within this covered period. Since its a
no-frills product, it is also the cheapest amongst the Life Insurance Products.

2. Unit Linked Policy (ULIP)

ULIPs are probably the most sold amongst all Life Insurance variants. They
provide the applicant with not only life cover but an effective investment tool also. A part
of the premium paid is invested in the market and can earn decent returns (based on the
performance of markets). Similar to Mutual Funds, the applicants can also choose their
investment mix i.e. the ratio of debt & equity in the invested instruments.

3. Endowment Policy
Endowment Policies also cover the individual/risk for a specified period (like
Term Insurance) but here all the premium deposited is returned back , along with the
bonus accumulated at the end of the period. It is hence used as a collateral for education
loans, etc by the loan provider.

4. Money Back Policy

Money back policies are basically like endowment policies where part of the
survival benefits are earned during the life of the policy.

5. Whole Life Policy

As the name suggests, a Whole Life Policy continues for the complete life of the
policy holder, post which the beneficiary of the policy gets the covered amount.

5
HISTORY OF LIFE INSURANCE IN INDIA
In India, insurance has a deep-rooted history. It finds mention in the writings of
Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The
writings talk in terms of pooling of resources that could be re-distributed in times of
calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to
modern day insurance. Ancient Indian history has preserved the earliest traces of
insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has
evolved over time heavily drawing from other countries, England in particular.

Phase 1:-
1818 saw the advent of life insurance business in India with the establishment of
the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834.
In 1829, the Madras Equitable had begun transacting life insurance business in the
Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last
three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and
Empire of India (1897) were started in the Bombay Residency. This era, however, was
dominated by foreign insurance offices which did good business in India, namely Albert
Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian
offices were up for hard competition from the foreign companies.

Phase 2:-
In 1914, the Government of India started publishing returns of Insurance
Companies in India. The Indian Life Assurance Companies Act, 1912 was the first
statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act
was enacted to enable the Government to collect statistical information about both life
and non-life business transacted in India by Indian and foreign insurers including
provident insurance societies. In 1938, with a view to protecting the interest of the
Insurance public, the earlier legislation was consolidated and amended by the Insurance
Act, 1938 with comprehensive provisions for effective control over the activities of
insurers.

6
 The Insurance Amendment Act of 1950 abolished Principal Agencies. However,
there were a large number of insurance companies and the level of competition was high.
There were also allegations of unfair trade practices. The Government of India, therefore,
decided to nationalize insurance business.

Phase 3:-
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance
sector and Life Insurance Corporation came into existence in the same year. The LIC
absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian
and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance
sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the
west and the consequent growth of sea-faring trade and commerce in the 17th century. It
came to India as a legacy of British occupation. General Insurance in India has its roots in
the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the
British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first
company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance
Associaton of India. The General Insurance Council framed a code of conduct for
ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act,
general insurance business was nationalized with effect from 1st January, 1973. 107
insurers were amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company

7
Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of
India was incorporated as a company in 1971 and it commence business on January 1sst
1973.
This millennium has seen insurance come a full circle in a journey extending to
nearly 200 years. The process of re-opening of the sector had begun in the early 1990s
and the last decade and more has seen it been opened up substantially. In 1993, the
Government set up a committee under the chairmanship of RN Malhotra, former
Governor of RBI, to propose recommendations for reforms in the insurance sector.The
objective was to complement the reforms initiated in the financial sector. The committee
submitted its report in 1994 wherein, among other things, it recommended that the private
sector be permitted to enter the insurance industry. They stated that foreign companies be
allowed to enter by floating Indian companies, preferably a joint venture with Indian
partners.

Phase 4:-
Following the recommendations of the Malhotra Committee report, in 1999, the
Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA include
promotion of competition so as to enhance customer satisfaction through increased
consumer choice and lower premiums, while ensuring the financial security of the
insurance market.

The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up to 26%.
The Authority has the power to frame regulations under Section 114A of the Insurance
Act, 1938 and has from 2000 onwards framed various regulations ranging from
registration of companies for carrying on insurance business to protection of
policyholders’ interests.

8
 In December, 2000, the subsidiaries of the General Insurance Corporation of India
were restructured as independent companies and at the same time GIC was converted into
a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in
July, 2002.
Today there are 18 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 18 life insurance companies operating in
the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.
Together with banking services, insurance services add about 7% to the country’s GDP.
A well-developed and evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same time strengthening
the risk taking ability of the country.

COMPETITORS OF MNYL

• Bajaj Allianz Life Insurance Company Limited

• Birla Sun Life Insurance Co. Ltd
• HDFC Standard life Insurance Co. Ltd
• ICICI Prudential Life Insurance Co. Ltd.
• ING Vysya Life Insurance Company Ltd.
• Life Insurance Corporation of India
• Met Life India Insurance Company Ltd.
• Kotak Mahindra Old Mutual Life Insurance Limited
• SBI Life Insurance Co. Ltd
• Tata AIG Life Insurance Company Limited
• Reliance Life Insurance Company Limited.
• Aviva Life Insurance Co. India Pvt. Ltd.
• Shriram Life Insurance Co, Ltd.
• Sahara India Life Insurance
• Bharti AXA Life Insurance

9
• Future Generali Life Insurance
• IDBI Fortis Life Insurance
• Religare Life Insurance
• DLF Pramerica Life Insurance
• Star Union Dai-ichi Life Insurance
• New India Assurance
• Oriental Insurance Company
• Royal Sundaram Alliance Insurance

BENEFITS OF LIFE INSURANCE

For The Company:
1. Revenue generation.
2. Increasing market share
3. Funds for Investment
4. Profit Maximization

For The Client:

1. Life cover
2. Investment
3. Tax benefit
4. Increase in cost of living
5. Increase in spending power

For The Society:

1. Increase in awareness of life insurance
2. Upbuilding the industrial life of the nation
3. Improving standard of living

10
 3. OVERVIEW OF MAX NEW YORK LIFE
INSURANCE

PROMOTERS OF MNYL

MAX INDIA LTD.

Founded in 1985, Max India Limited is a Public Limited company listed on the
NSE and BSE of India with over 26,000 shareholders. Today, Max India Limited is a
multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge,
People and Service oriented businesses of:
• Healthcare (Max Healthcare)
• Life Insurance (Max New York Life Insurance)
• Clinical Research (Neeman Medical International)

Max also Maintains Interests in Specialty Plastic Products for the packaging
industry (Max Speciality Products) Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr Analjit Singh and a leading private equity firm,
Warburg Pincus which accounts for 28.7% of the total shareholding. The balance
shareholding is held by the public and Institutional Investors.
Till 1999, The Company’s Main Interests and Partnerships were the following:

• Bulk Active Pharmaceuticals

• Electronic Component Distribution
• Mobile Telephony
• V-SAT Communications
• Plating Chemicals

11
 • Information Technology

Their partners include:

• DSM Gist Brocades

• Motorola, USA
• Avnet Inc., USA
• Hutchison Telecom Ltd. Hong Kong
• Comsat Investment Inc., USA & Lockheed Martin, USA
• Atotech, Germany
• Mind Crossing, USA

In 2000, the Company reinvented and restructured itself to focus on the businesses
of ‘Life’ under the them, Life…Our Focus.

Max New York Life Insurance, founded as a Joint Venture between Max India
Limited and New York Life, a Fortune 100 company, is one of the leading private life
insurers in India.

Max Healthcare, a subsidiary of Max India Limited is India’s first provider of

comprehensive, standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research

provider operating across three locations spanning North America, Asia and Latin
America. Each location is backed by comprehensive infrastructure and highly skilled and
experienced personnel.

NEW YORK LIFE INSURANCE COMPANY

New York Life Insurance Company, a Fortune 100 company founded in 1845, is
the largest mutual life insurance company in the United States and one of the largest life
insurers in the world. Headquartered in New York City, New York Life’s family of

12
companies offer life insurance, annuities and long-term care insurance. New York Life
Investment Management LLC provides institutional asset management and retirement
plan services. Other New York Life affiliates provide an array of securities products and
services, as well as institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial strength',
adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its
customers, agents and employees with compassion, consideration and respect.

New York Life is one of the largest and strongest life insurance companies in the
world with more than USD$215 billion assets under management and has received
among the highest ratings for financial strength from the life insurance industry's
principal rating agencies: A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1),
Fitch (AAA). According to Moody's, "New York Life's rating reflects the company's
good quality investment portfolio, ample liquidity, and sound capitalization, as well as
the good growth potential of its international business.”

As a leader in the insurance industry, New York Life continues to bring to its
operations new management concepts, advanced technologies, new distribution and
training systems and innovative insurance products.

BOARD OF DIRECTORS:
• Mr. Amaljit Singh - Chairman, Max India Limited
• Mr. Anuroop (Tony) Singh - Vice Chairman, Max New York Life Insurance
• Mr. Rajesh Sud - CEO & Managing Director, Max New York Life Insurance
• Mr. Rajit Mehta - Executive Director & Chief Operating Officer, Max New York
Life Insurance
• Mr. John Harrison - Director, Max New York Life Insurance
• Mr. Richard Mucci - Director, Max New York Life Insurance
• Dr. Omkar Goswami - Director, Max New York Life Insurance
• Mr. Rajesh Khanna - Director, Max New York Life insurance

13
MANAGEMENT

• Rajesh Sud- Managing Director and CEO

• Rajit Mehta - Chief Operating Officer
• Anil Mehta - Senior Director - New Markets SBU
• Sunil Kakar - Senior Director & Chief Financial Officer
• Ajay Seth - Senior Director- Legal & Compliance
• Debashis Sarkar - Senior Director & Chief Marketing Officer
• John Poole - Appointed Actuary

PRODUCTS

PROTECTION PLANS:

1. Five yr renewable and convertible

2. Level term policy

CHILDREN PLANS

1. Children endowment to 18
2. Children endowment to 24
3. Smart steps
4. Smart steps plus
5. Smart steps single premium

INVESTMENT PLANS

1. Life maker premium

2. Life maker platinum
3. Life maker gold
4. Smart assure
5. MNYL smart Xpress

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RETIREMENT PLANS

1. Easy life retirement

2. Smart invest pension

HEALTH PLANS

1. Life line medicash

2. Life line medicash plus
3. Life line wellness
4. Life line wellness plus
5. Life line safety net

SAVINGS PLANS

1. Whole life
2. Life gain plus 20
3. Life gain plus 25
4. Life pay money back

STRATEGIC PRODUCTS

1. Bancassurance- Capital builder

2. Partnership Distribution- Max Mangal, Max Vriksha, Capital builder
3. Max Amsure- Future builder, Bonus Builder, Buisiness Builder, Secure returns
builder

15
 4. PEST ANALYSIS
POLITICAL
• The sector is highly regulated by the government and even two
governments in India have fallen over the issue of liberalization of the insurance
sector (which was nationalized in 1971). But the government of A.B.Vajpayee as
gone ahead to announce the liberalization of this sector announcement was made
in November 1998.
• All insurance companies need to undertake certain percentage of their
business in rural India as per guidelines of the IRDA. This directive is backed by
the government to ensure balanced growth in India.
• There are also limits to the amount of investment that can be made in the
investment sector i.e. limit on the foreign holdings. E.g. IRA allowed for up to
26% foreign equity participation in the life insurance sector.
• For better regulation purpose of the insurance sector the government has
established following bodies:
1. IRA: Insurance Regulatory Authority.
2. IRDA: Insurance Regulatory and Development Authority.
3. TAC: Tariff Advisory Committee.
This itself shows the level of government control in the sector.
• There are also a lot of restrictions when it comes to setting up insurance business
in India. E.g. No life insurance company can be registered under the Act unless
they have a paid up capital of Rs. 100 crores. Also every life insurer shall deposit
with the reserve bank of India one percent of the total gross premium written in
India in any financial year, not exceeding Rs. 10 crores.

16
 • Another factor, which affects the insurance sector, is the tax policy. The tax
reforms in India are such that it encourages the citizens to invest in the insurance
sector.
• The employment laws and government stability in India which consist of multi-
party system also affect the working of various insurance companies.
• Insurers are required to fulfill certain social commitments as well. As many of the
social welfare measures companies are not just regulated, but have been mandated
to hand over a portion of their funds to the state for investment in infrastructure
and for social development through government bonds and securities. In India, the
pattern was, accordingly, prescribed in great detail by the government.

ECONOMICAL
• Interest rate at bank and interest rate of P.F variation very much affect the life
insurance industry, because people are always attract by higher return. Therefore,
they do not prefer lower return policy.
• Unemployment also affects insurance industry, because the unemployment people
will not have earning, so saving also affect to life insurance sector. Hence, the
economic conditions of the people in the country also affect the working of the
company.
• Life insurance industry will directly affected by earthquake, monsoon, and natural
calamity. Because of these events turns into lots of death, so the life insurance
companies have to pay claim against policy. Infant mortality rate and mortality
rate are also affecting to life insurance.
• Typical Indian want luxurious product against low income, so that they prefer
installment or annuity (EMI), so that they may not have extra saving to invest in
life insurance.
• Capital adequacy is a matter of attention in view of the nature of the life insurance
business, where in the case a contingency arises, the insurers should be in a
position to meet its long-term contractual obligations and pay up the dues or
claims. E.g. the Malhotra committee suggested and subsequently the IRDA

17
 stipulated a minimum capital base of Rs 1 bn for any entity wanting to enter the
life insurance business.
• Inflation can also be one of the causes to change the scenario of the insurance
sector. High inflation for instance, would tend to reduce the insurance business,
particularly life, because the real value of the money paid back to the policyholder
on maturity of the policy would go down and would, therefore, lose its attraction
for the investor.
• During the last few years the government has rationalized interest rate creates
better business opportunities for the life insurance sector because the substitute
products are graded lower by the customers. On the other hand the value of the
holdings of the insurance companies will increase. Rationalized of the interest
rates is still expected, and it is an opportunity for insurance companies.

SOCIO-CULTURAL
• Growth in the population is a major factor pushing up the demand as it exerts a
special influence on the life insurance market. But the ill effects of uncontrolled
growth of population also could spur the growth of demand. E.g. overcrowding in
public places of entertainment, public support, or too many vehicles on the road
can result in hazards like stampedes and pollution, which require covers and still
are not sold on a large scale today. Thus the positive as well as the negative
aspects of population growth are going to spur demand.
• The peculiar lifestyle of a country or an age also influences the insurance
business. Change therein produces different demands for life insurance.
• India is one of the developing countries: the level of education is very low here.
The literacy rate is very poor. More than 50% of the population is still uneducated
or more or less not educated. Thus the people are not able to understand the
concept of the life insurance.
• Another factor, which affects the life insurance sector, is the level of earning. In
India the rule of 80-20 is working. The 80% of the total population is having the
20% of the wealth and the 20% of the total population is having 80% of total

18
 wealth. Thus the richer are richer and poorer are poorer. Due to this the life
insurance sector is affected very much.
• The government attempts to extent life insurance with certain social obligations in
view in both urban and the rural areas through such means special schemes for the
weaker sections, and by tilting of the life insurance companies’ investments in
favour of social developments.
• Factors like the unemployment problem, real earning starts from around the age of
25 for salaried persons only in the affluent sector of society life insurance can be
taken before personal earning starts.

TECHNOLOGICAL
• Internet as an intermediary in the current Indian market is in the nascent stage.
There is a long way before insurance policies in India are brought via the internet.
with increase in the number of insurance companies there will be a need for
market segmentation and subsequently product designed for each of them. In such
a scenario Internet can be a effective channel for pushing product specific
information to a particular market segment. Consumer feedback about a particular
product as well as suggestions for different types or covers can also be generated
through the Internet.
• The most important factor that is affecting the insurance industry is the
maintaining the database of the customers. The insurance industry having a huge
list of the customers and technology helps manage the same.
• In technical terms, increased sophistications of technology brings with it, an
increased factor of risk involved. The risk can be of various attributes, for
example, the risk of data being lost due to a virus attack, the theft of important
and confidential information and so on, which ultimately results in losses for the
business entity. With this change in the business process, insurers have to devise
new methods for assessing, underwriting and servicing claims for the so-called e-
business insurance.
• Thanks to the technological advancement and increased de regulation and
sophistication, the carriers and producers can now reach the customers in different

19
 ways as has been proved in the US market and other developed nations the web is
extensively used for the access of information but when it comes to the purchase
of policy, the offline mode is preferred. The private players in India seems to have
identified this and have put substantial information on there websites regarding
policies, quotes and contact information among other routine stuff.

5. RESEARCH METHODOLOGY

In order to undertake the research a sample was designed based on which the final
analysis and recommendations of the report were arrived at. Some of the highlights of the
sample are as follows:

TARGET FOR THE SAMPLE

The sample for the research consisted of individuals above the age of 25 years and
included both males and females. The occupation profile included professionals, retired
individuals, housewives and a majority of service oriented people both in the private as
well as the public sector.

SAMPLING PROCEDURE
The sampling procedure chosen was Stratified Sampling as the
population was divided into homogenous strata (gender and age-wise)
and then selected randomly. Also, the selection of the respondents for
this purpose will be arbitrary.

SAMPLE SIZE
The sample size selected was 100 respondents. We found the rational for
the sample size using the formula:
n = (Zσ/E)2
Where:
Z: Standardized value corresponding to the confidence level (Assuming
to be 95%) = 1.96

20
σ: Standard deviation of the sample from the mean = 0.25
E: Standard error = 0.05
n: Sample size

So the sample size will be:

n = (1.96*0.25/0.05)2
n = 96 (approx 100)
So the sample size will be 100.

SAMPLING AREA
Residents of Mumbai and Thane formed a part of the sample. This was across
respondents from South Mumbai, Mumbai Suburbs, Thane district, Central and Harbour
areas of Mumbai too. They were randomly selected from these areas and their answers
were analysed.

SAMPLING DRAWBACKS
The drawbacks of the sample are that they are just selected from Mumbai and
Thane alone, so the analysis and recommendations can only be applied to the surveyed
areas and not for Pan-India.

LIMITATIONS OF THE STUDY:

 As stated above the study does not include the entire population of Mumbai as it
is nearly impossible to conduct a survey for such a huge base of customers
physically.
 Further the Time period for the study was 2 months as a part of the summer
project, which could have been more if it was a detailed study.
 We have chosen only the city of Mumbai for our study. Here different samples
from different regions of India could have also been taken.

21
HYPOTHESIS

The following are the hypothesis based on which the research was undertaken:

• Ho: CONSUMER IS IN FAVOUR OF BUYING THE INSURANCE.

HA: CONSUMER IS NOT IN FAVOUR OF BUYING THE INSUANCE

• Ho: CONSUMER VIEW INSURANCE PURELY AS AN INVESTMENT

TOOL.
HA: CONSUMER DOES NOT VIEW INSURANCE PURELY AS AN
INVESTMENT TOOL.

• Ho: ADVERTISING AFFECTS THE BUYING BEHAVIOR OF THE

CONSUMER
HA: ADVERTISING DOES NOT AFFECT THE BEHAVIOR OF THE
CONSUMER

• Ho: CONSUMERS PREFER PRIVATE PLAYERS.

HA: CONSUMER PREFER PRIVATE PLAYERS

22
 6. QUESTIONNAIRE

Name: ____________________________________________________ D.O.B

____________________
Address:
________________________________________________________________________
____
Contact Details: _______________ _______________________
____________________________ (Landline) (Mobile)
(E-mail address) Education:________________________ Gender:
___________________

Occupation: ________________________

Note: Multiple Selections Permitted.

1. Have you taken a life insurance policy for any of the following?
Yourself Spouse Children Parents
Others. _________________ Never taken

2. What type of Insurance plan do you prefer?

Child Plan Retirement Plan ULIP Plan Money
Back Plan
Why?
________________________________________________________________________
_
_______________________________________________________________________
______.

23
3. What are the key reasons behind which you went ahead for an insurance plan?
Risk Cover Investments Tax Saving
Others________________

4. Which Insurance company do you prefer?

LIC (government) Private (specify the company
name)___________________
Why?
________________________________________________________________________
_

5. Which are the following factors do you consider while selecting a policy from an
insurance company?
Company brand name Product offerings Relation with
advisors
Others

6. Do advertisements influence you while buying an insurance policy? (Select anyone

option only)
Strongly Agree Agree Neither Agree or Disagree
Disagree
Strongly Disagree

7. What are the factors that refrain you from buying an Insurance Policy?
________________________________________________________________________
________________________________________________________________________
___________.
8. Rank the following modes of advertising in the order of their influence on you, when it
comes to buying insurance? (Where 1 = most influential …. 5 = least influential)
TV __________
Print Ads __________
Hoardings __________
Radio __________
Word of Mouth __________
Others (Specify) ____________ __________

9. Have you heard about Max New York Life Insurance and its products?
Yes No

24
10. Do you e-buy Insurance? (ie. Via telephone, internet).
Yes No
If Yes, Why?
___________________________________________________________________
________________________________________________________________________
______.

11.
a. When I say Life Insurance which is the first Company that comes in your mind?
____________________________________________________________________
______.

b. Which are the other companies that come in your mind?

____________________________________________________________________
______.

c. Which Company will you consider while buying an Insurance policy?

____________________________________________________________________
______.

d. Before buying an Insurance policy which other companies will you consider?
____________________________________________________________________
______.

e. Which Insurance Company you will not consider at all?

____________________________________________________________________
______.

- Thank You -

25
 7. DATA ANALYSIS

Out of total sample size of 100, the sample mix was divided into two parts:

i) On the basis of their genders where the total number of males – 57 and the total
number of females – 43

Figure 0.1

ii) On the basis of different age groups where the total number of people above the
age group of 35 are 41 and below the age group of 35 are 59

26
 Figure 0.2

Analysis of people buying life insurance products for them and other family
members

Figure 1.1

From the above observation it is found that both the genders have bought life
insurance for themselves as out of 43 females 30 are self insured and out of 57 males 41
have bought insurance for themselves. Following which both the genders preferred
buying insurance for their child and spouse respectively. Out of the total number of males
and females, 11 males and 10 females have said they have not taken insurance at all
which states that out of total sample of 100, 21% of the people have not purchased
insurance till now.

27
 Figure 1.2

From the above observation it is found that people below the age group of 35 have
preferred buying insurance policies for themselves and for their parents. This clearly
indicates that the importance of insurance is growing in today’s world. The sample
studied in this age group showed the fact that majority of the people were just getting
settled and did not consider buying insurance for their spouse or children at this point of
time. Also it was observed there were many people in this age group who had not bought
insurance policies at all.
People above the age group of 35 have bought insurance policies for themselves
followed by their children and spouse respectively in order to secure their future.
However people in this age group have not considered buying insurance policies for their
parents. It is also observed that around 20% of the people have not considered buying life
insurance policies at all.

28
 Figure 1.3

Here males below the age of 35 have bought insurance policies for themselves
and their parents. Also it is found that 24% of males in this age group have never bought
insurance policies. However this trend shows the growing awareness of the insurance
sector.
Also it is observed that males above the age of 35 have purchased life insurance
policies for themselves, following which children and spouse respectively. This shows
the high amount of security for children. These people have not considered buying
insurance policies for their parents.
Females in both the age groups have considered buying insurance policies for
themselves. However females below the age group of 35 have bought insurance policies
for their parents, which is in higher percentage when compared to males. Also around
20% of females in both age groups have never considered buying life insurance policies.

29
Various insurance plans bought by individuals

Figure 2.1 – Gender Wise

As per the above observation, most males and females have considered buying
retirement plan followed by money back plan, child plan and ULIP plan respectively.
However males have considered the option of buying ULIP plan which is not seen on a
high scale among females.
However the main reasons why males and females have opted for retirement and
money back plan is to have secured investment of money to avoid an uncertain future.
They have invested their savings so as to obtain better returns on their money invested.
This is to serve the purpose at various levels of life, to save tax and lastly for safety
reasons. Males who have invested in ULIP plans have considered this option as it offers
better returns on their money as well as an availability of flexible investments.

30
 Figure 2.2 – Age Wise

As per the above observation people below the age group of 35 have invested in
retirement and money back plans. This shows their concern towards their future which
also explains the growing importance of insurance. Also people in this age group have
given significant importance to retirement plan as most of them have jobs and do not
have private business so they are more concerned about post retirement income. ULIP
plan is slowly catching importance in this age group as people have considered buying
insurance for better returns and the flexibility they get while investing.
Whereas people above the age group of 35 have invested mostly in child plans for
the future security of their children to have a sufficient flow of money .This age group
has also considered investing on retirement and money back plan.

Figure 2.3 – Gender and Age combined

31
 Males below the age group of 35 have invested in retirement plans. This shows
the growing concern of this generation towards their old age. After retirement they wish
to have a secured life and have a regular flow of income. Also they have considered in
investing in Money Back Plan so as they have better returns in future, also their money is
secured for a long period of time and finally they can attain long term objectives.
Males above the age group of 35 have invested in money back and retirement plan
respectively. Here the ratio of buying child plans is higher in this age group as along with
their personal security they are concerned about the child’s future. They have invested in
child plan so their child can have proper education in the long run, have security of their
future growth. This shows the changing needs of different generations. Also ULIP pans
are slowly catching importance among males in both this age group.
It is observed that females below the age group of 35 have invested in retirement
plans and money back plan respectively. Again here females in this age group are mostly
working and educated and are aware of their future requirements. To have secured life
ahead these options are preferred. Also this age group has started considering on
investing on ULIP plans which is not seen among women above the age group of 35.
Females above age group of 35 have considered buying life insurance in retirement,
money back and child plans. These plans are opted by females in this age group mainly as
a risk coverage option.
Reasons considered while buying insurance policies

Figure 3.1 – Gender Wise

32
 From the above observation it has been found out that males have invested in life
insurance for multiple reasons being risk cover, as an investment tool and also for saving
tax. Whereas females preferred buying insurance policies mostly as a risk covering tool
followed by saving tax and as an investment tool.

Fig- 3.2 – Age Wise

From the above observation it has been found out that people above the age group
of 35 have invested in life insurance for multiple reasons being risk cover, as an
investment tool and also for saving tax. Whereas people below the age group of 35 have
preferred buying insurance policies mostly as a risk covering tool followed by saving tax
and as an investment tool.

33
 Figure 3.2 – Gender and Age combined

It is seen that males below the age group of 35 have invested in life insurance
mainly as a risk cover tool followed by tax saving and for investment reasons. This shows
that today’s younger generation who are more into services rather than establishing their
own business, buy life insurance mostly as a risk cover tool.
Whereas males above the age group of 35 have invested in life insurance mainly
for investment and tax saving purpose. This is then followed by investing to cover risk. It
is observed that females below the age group of 35 have invested in life insurance mostly
as a risk covering tool followed by saving tax and as an investment tool.
It is also observed that females above the age group of 35 have invested in life
insurance mainly as a risk cover tool, tax saving and then consider the investment option.

Preference between LIC and private players

Figure 4.1 – Gender Wise

34
 From the above observations females still prefer buying insurance policies from
LIC because of the belief that it is a government organization and hence it is a reliable
place to invest the hard earned money. Also LIC has been in India since past several
years it is always recommended by family, relatives and friends, hence a growing trust on
this brand name has been observed.
However there is a growing trend observed of private players because of the
growing awareness among the masses due to the entry of new players and their
advertising campaigns. Also these private players want to sustain in these markets and
hence have introduced good products and services which attracts the consumers towards
them.

Figure 4.2 – Age Wise

It is observed that in both the age group majority of the people prefer buying LIC.
Its also been observes that the private players are gaining popularity in people below the
age group of 35. The reason as stated above that it is a trusted brand in the society since it
has build a good reputation in many years. Also when it comes to investing money for

35
security or for good future people always ask advice from adults or the one who has
already invested and here LIC tops the list.

Figure 4.3 – Male respondents below and above the age of 35

Here males in both the age group prefer buying life insurance from LIC. LIC is a
trusted brand as the performance figures makes it favorable and reliable for people to
invest. An assurance, a security of safety is observed among males with this brand.
However males below the age group of 35 are now considering buying insrance from
private companies because of their growing awarness, changing government policies and
the services assured by the private players. They also have started believeing that private
players offer more competetive polices than LIC.

Figure 4.4 – Female respondents below and above the age of 35

It is observed that females in both the age group prefer buying life insurance from
LIC. Even females below the age group of 35 have full faith on LIC rather than private

36
players. The most influential decisions for buying insurance policies among females in
both the age group is that it is recommended by adults, family members, relatives and
friends. Also the trust factor is high for LIC because firstly being a government
organisation and also of its presence post independence.
The most selceted private players in all the genders and ager group are Max New
York, ICICI Prudential,Bajaj alliance following which the other players are Kotak
Mahindra Life Insurance, SBI, HDFC.

Factors considered while selecting an Insurance Policy.

Figure 5.1 – Gender Wise

From the above it is observed that males and females prefer buying insurance
policies depending upon the company brands name and product offerings. But when it
comes to buying insurance policies in terms of relation with advisors, the ratio of females
is higher then males

37
 Figure 5.2 – Age Wise

Here both the age groups prefer buying insurance policies on product offerings
and on company’s brand name. However when it comes to buying insurance policies in
terms of relation with advisors, the ratio of people above the age group of 35 is higher
then below the age group of 35.

Figure 5.3 – Gender and Age Wise

Males above the age group of 35 buy life insurance firstly on company brand
name and then on product offerings. Males below the age group of 35 buy life insurance
depending both on company brand name as well as product offerings. This shows the

38
importance of private players emerging as product offerings is slowly gaining
importance.
However when it comes to buying insurance policies in terms of relation with
advisors, the ratio of males above the age group of 35 is higher then below the age group
of 35.
Here females of both the age group consider buying insurance policies on product
offerings and on company’s brand name. But when it comes to buying insurance policies
in terms of relation with advisors, the ratio of females above the age group of 35 is very
much higher then females below the age group of 35.

Influence of advertisements on customers while buying insurance

39
 Figure 6.1 – Gender wise

Here both the genders believe that advertisements influences their decision for
buying insurance policies, but when it comes to male there are 11% who say that
advertisements strongly influence their decisions against 2% of females.

Figure 6.2 – Age Wise

As per the above observations it is observed that people of below the age group of
35 agree that advertisements influence their decisions of buying insurance policies which
is 59% of people whereas people above the age group of 35 neither agree nor disagree
that advertisements influence their decisions of buying insurance policies which is 42%.

40
 Figure 6.3 – Males below and above the age of 35

It has been observed that most of the males below the age group of 35 believe that
advertise does play an important role in buying life insurance policies. It does influence
their decisions to buy insurance.
Whereas males above the age of 35 disagree or have a neutral belief, that
advertise influences their buying decisions. Some males in this age group also belief that
advertise affects their buying decision towards insurance.

41
 Figure 6.4 – Females below and above the age of 35

Here among both the age groups females believe that advertisement influences
their decision on purchasing insurance policies. Advertisement does play a major role in
both the age group. It is also observed that females above the age group of 35 have a
neutral belief of it affecting their buying decisions.

Factors refraining customers from buying insurance policies

It is observed that the most common factors which refrain males from buying
insurance policies are the high premium amounts, the less returns one gets and the long
period of investment. Also both the age group believes that it is a tedious process of
settlements that take place, filling up lot of forms and paperwork, and no satisfactory
settlement or service is received.
Males below the age group of 35 believe that the agents do not provide adequate
information on various policies and thus misguiding the clients. They also believe that
some don’t have technical expertise to implement latest practices. Agents also misguide
them while purchasing insurance polices by providing inadequate information.
Males above the age group of 35 believe that if the market status of the company
is not upto the market they would not buy insurance policies over there. Also the trust

42
factor on private companies is low because lot of hidden cost is there which misguides
them.
Even females of both the age group believe that to buy insurance it requires a high
premium amount which refrains them from buying insurance. Also it contains a long
period of investment and does not have adequate returns. Moreover the most influential
factor that refrains them from buying insurance policies the experience of their near and
dear ones while claiming for insurance. The adequate service is not provided at that time
and the person suffers which causes a hindrance towards having faith on buying
insurance policies.

Modes of advertising and their preference by consumers.

Rank Overall M F Below 35+

35
TV TV TV TV WOM
1
WOM WOM WOM WOM TV
2
PRINT PRINT PRINT PRINT PRINT
3
HOARDING HOARDING HOARDING HOARDING HOARDING
4
RADIO RADIO RADIO RADIO RADIO
5
* WOM stands for Word Of Mouth
Figure 8.1 – Ranking based on gender and age

M BELOW M 35+ F BELOW F 35+

Rank 35 35
TV WOM TV WOM
1
HOARDING TV WOM TV
2
PRINT PRINT PRINT PRINT
3
WOM HOARDING HOARDING HOARDING
4

43
 RADIO RADIO RADIO RADIO
5
Figure 8.2 Ranking based on gender and age combined

The table above indicates the rankings from 1-5 with 5 being the least and 1 being
the highest rank. Here the outcomes of the survey for Question no: 8 are divided into 8
categories. The findings of the table are as follows:
• In the overall category TV advertisements dominate as the most influential mode
of reaching the target audience. TV is closely followed by WORD OF MOUTH.
Print media and Hoarding are on 3rd and 4th place respectively with Radio having
the least influence as the advertising mode.
• In the category of gender, males also preference is given to TV which is closely
followed by WOM. Here Males being exposed to outer world more than females
they do not show any different results than the other category. Thus Print,
Hoarding and Radio are on 3rd, 4th and 5th spot again.
• Females watch more TV than Males, so it becomes obvious that TV becomes the
most influential mode of advertising for them. WOM is at the 2nd place here too.
• If we see agewise people below the age of 35 watch TV more than people above
35, thus it shows in the results that TV is the most influential mode of advertising.
Again WOM follows TV here. That’s because people below 35 interact more.
• Now in the age group 35+ WOM dominates as the mode of advertising. This is
because people in this age group watch less TV. So here WOM gets a lead. But
there is no change in the order of Print media, Hoardings and Radio.
• Males below 35 are most influenced by TV, after that the next most influential
mode is Hoarding. This may be due to the reason that males in this category travel
a lot than others. Here surprisingly WOM is at 4th spot which shows that Males in
this age group are not affected much by WOM.
• Males above 35 are most influenced by WOM. Which is closely followed by TV.
Print, Hoarding and Radio share 3rd, 4th and 5th spot respectively.
• Females below 35 are most influenced by TV whereas 35+ are influenced by
WOM.

44
Fig 8.0

The brand awarness of Max New York Life Insurance is high in females than comapred
to males.

Fig – 8.1

The brand awarness of Max New York Life Insurance is the same for different
age groups.

45
Fig – 8.2

The brand awarness of Max New York Life Insurance is the same for different age
groups among males.

Fig -8.3

The brand awarness of Max New York Life Insurance is the same for different
age groups for females too.

Q10 People do not ebuy insurance irrespective of gender or age because of :

i) Lack of awarness of insurance being sold through internet.

46
 ii) As this is a service industry, there is no one to assure and explain about the
various products in online buying as a piece of paper is the only evidence.
Whereas when it comes to buying insurance from an agent, he is there to assure
and explain you the various products and the company.

Brand recall when it comes to Insurance.

When the sample studied was asked which is the first company that comes to their
mind when the word ‘Life Insurance’ was mentioned LIC (Life Insurance Co-operation
of India) was the most common reply given, it was 94%. The remaining 6% share of the
responses was acquired by only three main players namely ICICI, Max New York Life
(MNYL) which were just in single digits namely 3%, 2% and 1% respectively.

Figure 11.1 – Gender Wise Brand Association when it comes to Insurance

When the same question is analyzed in terms of gender (Fig 11.1) more males
preferred LIC compared to females. From this it can be inferred that males being the
major decision maker in terms of insurance and prefer the government owned LIC
compared to the private players. On the other hand both the ICICI respondents were
males. Here too the private players had just 1 or 2 respondents who could relate the word
‘life insurance’ to them. So if the private players want to attract more customers they
need to formulate their promotions so that they are targeted towards male audience. Also

47
private players like Max New York Life currently have a very little awareness among the
sample surveyed.

Figure11.2 – Age wise Brand Association when it comes to Insurance

The same question when looked in terms of age classification (Fig 11.2) it could
be seen that many youngster below 35 (56%) preferred LIC compared to the private
players. This again shows that if the private players need to establish themselves then
they have to first try to tap this age group i.e. below 35 years in order to ensure growth in
the coming years. They can launch many plans like the commonly known pension plans
so that they can establish themselves among this young generation.
If we look at both gender and age together it can be noted that male respondents
below the age of 35 are the major decision makers when it comes to Insurance. This was
followed by females below the age of 35.
On the whole LIC enjoys the best brand recall amongst all groups of people and it
would not be wrong to say that it has achieved the status of being a generic brand. The
private players as well as banks like SBI which have moved into the insurance business
need to work towards this as they are lacking far behind even when it comes to brand
recall. Max New York Life too has begun advertising its plans but there is still a long
way to go before it achieves the position that LIC enjoys in the minds of the people.
Some of the private players do not occupy any place in the consumers mind when the
word insurance is stated, they need to work hard on this as it is rightly said that ‘out of
sight is out of mind’. They need to increase their presence in the consumers mind.

48
Other Companies that come to mind with the mention of Life Insurance

The other companies that come to mind of the sample surveyed include the
private players in the insurance sector. Max New York Life is the leading player in the
private sector with 52 respondents followed by ICICI, HDFC and SBI with 35, 19 and 19
respondents. The reason for such high response towards Max New York Life can be
attributed to such high brand awareness as they have now begun advertising through the
right communication channels thereby reaching the targeted audience. E.g. Max New
York Life advertised a lot during the T20 matches so it has increased its brand awareness
in the minds of the people among the insurance sector. The other players in the insurance
sector just contribute in single digits to the overall opinion of the people.

Figure 11.3 - Gender Wise brand recall in terms of other players

When classified on the basis of gender (Fig 11.3) for the same question the
number of males were more than the females (MNYL 31 males and 21 females, ICICI 18
males and 17 females, SBI 11 males and 8 females, HDFC 13 males and 65 females, etc)
in terms of the leading players selected by the sample surveyed. Bajaj Allianz was a

49
player which had majority of the males i.e. 12 inclined towards it compared to just one
female respondent.

Figure 11.4 – Age wise brand recall in terms of other players

The similar pattern of response was also witnessed in terms of age classification
(Fig 11.4). The age group of below 35 years had a higher weight age in terms of
responses compared to the ones above 35 years (MNYL 31 and 21, ICICI 22 and 13,
HDFC 13 and 6, SBI 11 and 8 respectively). In almost all the major cases the youngsters
out weighted the respondents above 35 years. So all insurance companies need to focus
on the younger generation with its product portfolio.
After LIC the next insurance company that company that comes to mind is
MNYL, ICICI and SBI respectively. There are also other players but their responses are
just in the single digits. Max New York Life so far has the best recall when it comes to
the other private players, hence it now needs to capitalize on the same. As it has its
agency model in place it needs to reach out to the prospective customers with its portfolio
of products. It must also aim to build on the existing advantage as other private players
are fast catching up and could cause a problem in for MNYL if does not follow the thumb
rule of constantly changing and launching innovative products as per the demands from
the market.

50
Insurance Company considered while buying Insurance.
This question is of significant importance as it leads to the actual usage of the
service in other words the determination of the profits for any of the insurance
companies. Customers may have significant brand recall but such recall need to lead to
buying of the service or else high brand recall would be of not much use.

35
32
30
30

25

20
MALE
15 13 FEMALE

10
5 5 5
5 4
3
2 2
1 1 1 1 1
0 0 0
0
LIC BAJAJ MNYL BIRLA ICICI HDFC KOTAK AIG SBI

Figure 11.5 - Gender Wise Insurance Company considered while buying Insurance

It can be observed from Fig 11.5 that in almost all the other players in the industry
the male and female respondents had an equal share in the responses. However when it
came to MNYL there were 13 male respondents compared to 4 female respondents. This
shows that for MNYL mostly males go ahead to buy insurance. Hence the company
needs to inform its advisors about the same so that based on a male customers psychology
the products can be presented. Simultaneously, the company needs to also target female
customers as there is a lot of scope that is present as today’s women are also forming a
part of decision making process for various products and services and in some cases they
need not depend on the male members before they make decisions.

51
 Figure 11.6 - Age Wise Insurance Company considered while buying Insurance

In terms of age wise here too respondents below the age of 35 were significantly
more than those above the age of 35 (Refer Fig 11.6). MNYL again needs to pay
attention to the same and increase its awareness among the higher age groups as they too
play a key role when it comes to making decisions in terms of insurance. MNYL has
tapped the right age segment and just needs to continue doing the same as it will show
results in the time to come.
When it came to being the first brand to occupy the consumers mind when it came
to insurance LIC had a 94% share but the same fell drastically to 62 respondents when it
came to buying of insurance. This shows that although has a top of the mind recall it does
not necessarily mean that they are assured of the same percentage of customers. Hence,
the private players like MNYL must ensure that despite LIC being a powerfully
positioned in the consumers it can launch attractive plans which will force the customers
who first recall LIC to still not go in for LIC’s products but rather MNYL products.
Currently MNYL has many products available but the same also needs to be made known
to the general public so that they can convert more potential customers into lifetime
customers towards MNYL brand and its offerings.

52
Other Insurance Companies considered while buying Insurance.
Here the opinion is based on the next best options in terms of insurance
companies that the respondents selected when it comes to buying life insurance policies.
As LIC has already the best top of the mind recall as well as the first option considered to
buy insurance, many of the respondents do not have any next best option and are loyal to
just one brand i.e. 32 respondents. This shows that industry has a potential of many
companies targeting customers with attractive products and keeping them loyal for a very
long time.

Figure 11.7 - Gender Wise Insurance Companies considered while buying Insurance

For all the next best options the males were more than the females (Refer Fig
11.7) and this can be witnessed across the leading options like MNYL, HDFC, ICICI,
Bajaj and SBI. Again private players need to make a note and target their products
towards the male audience as well as increase their reach by promoting their products that
appeal and induce female prospects also to buy insurance products from them. They can
even launch more female oriented plans which could draw more female customers
towards them.

53
 Figure 11.8 - Age Wise Insurance Companies considered while buying Insurance

When we look at the age wise (Refer Fig 11.8) consideration for the next best
insurance company considered to buy insurance, HDFC has a higher number of
respondents below the age of 35 compared to those above 35 years of age. Other players
too have the youngsters more than those above 35 years but the difference is not that
much compared to HDFC. On the other hand when it come to being loyal to just one
brand the respondents above the age of 35 are more than those below 35 years. This
shows that over time people like to stick to just one insurance company and be loyal to its
offerings. Companies must take note that they should ensure attractive product offerings
as well as good customer service so that they cannot just attract customers but also ensure
that they remain with them for a long time to come. As the respondents below the age of
35 are more than those above 35 it shows that most of the insurance companies especially
the private players are successful in plans like the popular Pension plans or ULIP plans
which are more inclined to the risk taking younger generation.

Insurance Company Not Considered at all

54
 Although most of the insurance companies have established themselves and feel
that they are offering the best customer service, there are quite a few people who feel that
some companies offerings or services are so bad that would never consider taking an
insurance policy from them. On the whole private players in general are not considered
by 11 respondents while 58 respondents do have any bad experience, in other words do
not consider any particular insurance company as bad so will go for the products of any
company as long as its offerings and services are good.

Figure 11.9 – Gender Wise Insurance Companies not considered at all

On the basis of gender too, 58 respondents which had 31 males and 27 females
selected (Refer Fig 11.9) said that they had no particular insurance player in particular.
This selection had almost equal number of males and females. The next option is ICICI
which had about 12 respondents followed by the private players in general. We can see
from the graph above that gender does not play a key role in deciding not to go ahead
with a particular insurance company.

55
 Figure 11.10 –Age Wise Insurance Companies not considered at all

On the basis of age (Refer Fig 11.10) 33 respondent below the age of 35 and 25
above the age of 35 did not have any particular insurance company which they wanted to
keep aside while deciding to go ahead while buying insurance. However, on the private
players front ICICI was the company which had the maximum number of respondents
compared to the other players in the industry.
For MNYL, the company needs to make a note that there is one respondent who is
averse to take a policy from MNYL, hence it needs to ensure that it must not have a
single respondent in this category as if the experience faced by even a particular
respondent is bad then it could lead to a negative image of the company being spread
among many more people as time passes.

8 CONCLUSION

56
The research report had certain hypothesis based on which the research was undertaken.
The following are the findings based on the hypothesis:
• There is no significant difference among consumers towards buying Life
Insurance policies. Thus,
Reject - Ha
Accept – Ho

Though the survey was conducted in Mumbai city, in 21 % cases it is found that
people have never taken any kind of insurance policy. And many of the people those who
have bought insurance do not have an insurance for themselves. They have either bought
it for their child or some other relative.

• The survey concludes that consumers do not view insurance purely as an

investment tool. Thus,
Reject - Ho
Accept – Ha

Majority of the people prefer Retirement plan followed by money back plan.
Whereas very few people have considered buying child plan and ULIP plan and males
prefer ULIP plan more than females. Major reason for taking an insurance policy was
Risk cover. People also considered Investment and Tax saving as important reasons for
buying an Insurance policy. People above 35 years of age were keen towards buying a
policy which satisfies above reasons.

• The survey indicates that consumers do not prefer buying life insurance
policies from private insurance companies. Thus,
Reject - Ho
Accept – Ha

57
 There is a natural inclination in people towards LIC. Whatever may be the gender
or age group, people mostly prefer LIC. Males also have a slight interest in looking for a
private policy which is not seen in females that much.

• The research states that advertisements have an influence on the buying

behavior of the consumers. Thus,
Reject - Ha
Accept – Ho

In the survey it is found that nearly half of the people agree that advertisements
influence their buying behavior. People above 35 years of age were reluctant to answer
the impact of advertisement on their buying of insurance.

In conclusion LIC is the leading player in the Insurance industry but when it
comes to private players Max New York Life is not only the best when it comes to brand
recall but also one of the preferred buyers choice among the other private players.
However, in the years to come it needs to fight LIC as that is its major competitor as well
as keep a tab on the other players like ICICI and HDFC which are not far behind.

58
 9. RECOMMENDATIONS

• Around 20 % of the population has not considered buying insurance policy, which
shows a large market is still untapped. The private players should take advantage
of this situation and try to convert these customers into their potential clients.
They should conduct high awareness programs regarding the benefits of insurance
policy and promote their brand at the same time. This will lead to people
recognizing the importance of insurance and private players can capitalize over
here.
• Child plan should be given more focus among elder age groups since a growing
concern is seen among individuals regarding the security of their kids. Also
awareness among the masses should be created regarding being adequately
insured which is the future necessity of individuals.
• Constant up gradation of retirement plans, money back plans etc is necessary
since this is the need of the masses. Innovative plans should me made in timely
order since individuals are more concerned in securing their old age. Also ULIP
plans have been gaining popularity among males and hence more importance
should be given to make such plans and capitalize their hold here. Females are
unaware of ULIP plans and hence private players should grab this opportunity to
provide them knowledge with these plans thus benefiting both the client and the
organization.
• Risk cover plans are gaining importance among the younger generations and
hence focus must be given to generate these plans since most of the younger
population is in service industry and hence they want their retirement to go
smoothly.
• LIC is preferred among all the age groups because of its assurance that it’s a
government organization and their money would be safe. To have a larger market
share, private players need to create an awareness of their presence. They should
convey the customers about the benefits in insuring in private industry; also
convey how well their money is safeguarded with them. Explanation needs to be
given the way security LIC is giving so are the private players.

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• Younger generations believe in the brand image of the organization, the various
products offered, etc. Hence the advisors should be given complete training on the
brand image of the company, its existence, its image in the market. Also the
advisors need to provide with the right product knowledge, consider the
requirements of the clients and offer right products. Good services offered (pre
and post sales) and good products would increase the importance of private
players.
• More than 50% people have agreed that advertisements influence them while
buying an insurance policy. This simply means that MNYL should go for
aggressive advertising. Other than cricket matches the Company can also target
females by showing TV ads during movies and ‘daily soaps’. Company can add
more of the emotional appeal in their TV ads as well as through print media.
Hoardings can also play an important role in attracting youth as well as males as
they are the majorities who are exposed to the outer world.
• MNYL must get people under their ‘trust’ which plays the most important role in
selecting an insurance policy. This can be done through advertisements,
information sessions, public seminars, etc. Through these strategies MNYL can
throw a light on their schemes, money back plans, higher returns, etc.
• In most of the samples it is found that people rank TV as the most influential
mode of Advertising. TV is followed by Word Of Mouth (WOM). Print ads,
hoardings and radio are on 3rd, 4th and 5th spot. This clearly suggests that TV ads
should be increased and made more appealing. Also people should be made aware
of the products and the best services which the company offers. This will
ultimately help in generating WOM publicity.
• More than 90% of the people have agreed that they are aware of Max New York
Life Insurance. This indicates that the company is well known and the only thing
remaining is to get people’s trust. This can be done by intensive advertising and
personal contacts.
• Majority of the people have said that they do not E-buy insurance policies. This
gives an idea to launch online buying procedures for consumers. In today’s world
almost every person is using computer and laptop. This will help consumers as

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 well as the company to attract more and more number of consumers who want
faster services and better results.
• MNYL needs to increase its top of the mind brand recall when it comes to
‘insurance’ as currently it stands in single digit. For this it needs to compete head
on with LIC rather than the other private players in the industry. It must ensure
that its name, logo or tagline features in prominent locations of Mumbai as its
rightly said ‘out of sight is out of mind’.
• When it comes to the next best player in terms of associating insurance ‘MNYL’
is the next company however it needs to work on being the number one player in
the industry as well as keep on tab on ICICI and HDFC which are not very far
behind.
• When it comes to the actual buying of an insurance policy LIC stands at the
number one position followed by MNYL. It is a good sign as MNYL is the leader
among the private players. However, in order to increase its awareness about its
other products too as well as keep a tab on the closely followed competition by
HDFC, ICICI and Bajaj Allainz.
• When it comes to the insurance company which is not considered at all, MNYL
needs to ensure that is does not feature in this category at all. The reason being
any bad experience will easily spread through word of mouth and will eventually
lead to a problem for the company.

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 10. BIBLIOGRAPHY

1. www.maxnewyorklife.com

2. www.irdaindia.org

3. www.irda.gov.in

4. www.scribd.com

5. www.wikipedia.com

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